Rates Up. Market Pause. A Rare Window for Home Buyers? - March Market Update

Over the past two years, many families have told me they felt like they were always chasing the market.

Homes sold before the second open. Auctions ran hot. Decisions had to be made under pressure, with barely a momnt to think. After February’s rate rise, things have slowed just a little. It is not a downturn. It is not distress. Just a pause.

For home buyers, that pause can be powerful.

When the market moves quickly, decisiveness wins. When it steadies, strategy wins.

Right now, buyers have a rare chance to think, plan, and act with intention while vendors are still aiming for top dollar. Last weekend, capital city auction markets showed steady clearance rates even as more homes came on the market, especially in Sydney and Melbourne.

The recent February rise in official interest rates has naturally reduced some urgency, giving buyers a moment to step back and make thoughtful choices.

Source: My Housing Market-Dr Andrew Wilson

What We Are Seeing Across The Capitals

Sydney

Family homes in the $2m to $4m range are still selling well, particularly in established school catchments and lifestyle pockets. But the tone has shifted a little.

Buyers are attending second inspections. Vendors are listening to feedback. Some campaigns are running longer than they would have six months ago. We are not seeing reports of “sold over reserve” like we did a few years ago.

There is still strong competition for A grade homes. The difference is that buyers generally have more time to think and negotiate.

My team operating in the Eastern suburbs, Northern Beaches, Inner West and North Shore have similarly reported some agents revising price guides to attract more buyers.

Average days on market for Sydney is currently running at 32 days compared to 41 last year, while listing volumes are down by 10.4% to this time last year.

Melbourne

Melbourne is presenting genuine opportunity for upgraders.

There is good depth of stock in the middle-ring suburbs. Days on market are a little longer than in Sydney, giving families time to consider their options and negotiate with confidence.

Vendors who are realistic on price are successfully transacting.

For buyers, this is one of the most balanced conditions we have seen in recent years.

There is strong potential in the $2.0m to $3.5m price range where you can get better value.

Outside the middle-ring suburbs, stock is tighter. High-quality listings are limited.

Some vendors want to upgrade with their growing families but are unable to pull the trigger because they can’t find anything to move to!

For example, Sandringham is becoming like Armidale and tightly held as vendors hold for longer time periods.

Average days on market for Melbourne is currently running at 31 days compared to 42 last year, while listing volumes are down by 13.3% compared to this time last year.

Melbourne has excellent pockets of opportunity.

Brisbane

Brisbane remains underpinned by strong migration and lifestyle appeal. Well-located family homes continue to attract strong interest.

Properties under the $1m price bracket are steaming ahead with peak demand from first home buyers, investors and home buyers. Our buyers’ agents are seeing 40 to 50 groups or more coming through some homes, and then we see multiple offers made same day! Makes for interesting negotiation tactics from the Propertybuyer team.

In the $1m-$2m price bracket we are seeing strong demand from both home buyers and investors.

In the $2m plus category- there is a little more caution than 6 months ago – buyers are not prepared to overpay 10% over market like last year.

If you are looking to secure a home in a specific school catchment or near lifestyle amenities, this steadier phase can make the difference between competing blindly and negotiating calmly.

The key point to note about Brisbane is that supply at historic lows, right across the market, which is a major frustration, and even if supply dropped 30%, prices would not adjust downward.

Buyers are tempering expectations of unlimited growth, giving themselves time to buy with confidence.

Cotality data indicates average days on market for Brisbane is 21 days compared to 22 last year, while listing volumes are down by 25.9% compared to this time last year. (In reality – most properties are selling within a week in the lower price brackets).

Brisbane is still running strong.

Adelaide

Adelaide continues to surprise many buyers with its resilience and relative affordability.

Supply remains relatively tight, which means quality homes are still sought after. But even here, buyers are asking more questions before committing.

In the sub $1m bracket there is attractive buying for units and townhouses. Around the $1.5m mark there is good competition for maisonettes (otherwise called terraces/ duplexes in other cities) as buyers seek to find a compromise on the expense of a house (but don’t want to live in an apartment).

At a recent auction in Croydon which sold for $1.525m, we saw 12 registered bidders on a quality house but only 3 ended up bidding.

Character homes on standard blocks of land are continuing to do well and increasing in value.

Average days on market for Adelaide is currently running at 28 days compared to 32 last year, while listing volumes are down by 9.1% compared to this time last year.

Adelaide still showing growth signs.

Perth

Perth has been one of the strongest markets over the past year, but we are starting to sense a slight mood shift as everyone is uncertain as to how long the bull run will last.

Properties under $700k are extremely hard to find- unless you are delving into less desirable suburbs. Properties are $900k to $1m are the sweet spot most investors and home buyers are chasing.

Properties in the $2m to $3m range are still competitive but far more moderate than lower price points.

But the key issue is critically low stock levels. Perth typically has 12,000 to 13,000 listings available at any one time – but in the current climate, only around 2000 properties available. The shortage is likely to last up to 4 to 5 years until more development stock comes on market.

Average days on market for Perth is currently running at 9 days compared to 15 last year, while listing volumes are down by 36.9% compared to this time last year.

Check Your Mindset

Property for families is not just a financial decision.

It is about:

• School zones and commute times

• Space for children to grow

• Proximity to parks and community

• A home that fits the next ten to fifteen years

When markets move too quickly, those decisions are often compressed into short timeframes.

A steady market gives families room to align logic with lifestyle.

We are not calling a correction. The underlying fundamentals remain strong across most capitals, supported by population growth and limited supply.

What we are seeing is a market recalibration.

For home buyers, this is often the best time to buy. Not when sentiment is euphoric. Not when headlines are negative. This is when conditions are balanced and buyers can act with confidence.

If You Have Been Waiting

Many families have told us they are waiting for “a sign” that the pace had eased.

This may be that sign.

If you are considering upgrading, relocating, or securing a long-term family home, now is the time to reassess your position with clear eyes rather than react to headlines.

The right home is rarely found by accident. It is secured with preparation, tenacity, and strategic negotiation.

If you would like to review your buying strategy in the current environment, we’d be very happy to help you identify the ideal suburbs for your budget range.

Recent Client Testimonial

“William and Propertybuyer are the only reason we got our dream home. My husband and I are both busy and the whole process felt overwhelming, especially the negotiations. I was very stressed and probably not the easiest client at times, but William was calm, strategic and completely across everything. He saved us so much time, worked incredibly hard behind the scenes and secured the property for us before it even went to auction. He also negotiated a price that was lower than we were prepared to spend! We’re so grateful for his effort, communication and honesty the whole way through. Couldn’t recommend them more.”

Clients – Liz & Faysal

Give us a call on 1300 655 615 to start a conversation about your next property purchase, or click here to send us your enquiry today.

 To have one of our friendly Buyers' Advocate's contact you, click here to:

or

call us on 1300 655 615 today.